After a year of pandemic-induced low rents, rental rates are now higher than at any time in the past two years in Houston. (File photo)
Rental rates have increased 6.6% since the start of 2021 in apartments in the Greater Houston area and 5.6% in the past three months alone, according to a July 6 report from ApartmentData.com.
The average effective monthly rent of $ 1,116 in June has exceeded every two months for the past two years, according to the report. The effective monthly rent – which is measured as the rental cost after factoring in concessions and utility adjustments – was $ 1,060 per month in March 2020, before the coronavirus pandemic.
The recent increase also comes after some Houston inner loop submarkets saw rents drop as much as 16% at the end of 2020.
Meanwhile, apartment occupancy rates hit 90.7 percent, also a record high in the past two years, according to the report.
Before the pandemic, occupancy rates were around 89%. Class A shares, which saw the largest decline, fell to 80% in June 2020 before rebounding to 86.4% in June 2021.
For the third month in a row, more than 5,000 apartments have been absorbed, according to the report, which means 5,000 more people in the Houston area have moved into an apartment than have left one in each of the years. these months. Prior to April, absorption had not exceeded 2,800 in any month of the previous two years.
The Heights-Washington Avenue and Montrose-Museum-Midtown submarkets saw the largest increases in rental rates over the past 12 months with 37.4% and 36.2% annualized growth, respectively. The 50-unit Avondale Highline in Montrose, which opened in October, is 99% leased, according to the report. A handful of other area projects that opened during the pandemic are over 70% leased, including the 318 Driscoll units in River Oaks, the 337 15th Street Flats units and the 363 Taylor Heights units.
About 38% of Houston units offer concessions, which typically come in the form of move-in promotions, free months, or floor plan promotions. This number is down from 45% in the monthly report published in early May by ApartmentData.com.
All statistics in each monthly report are derived from an ongoing survey of all apartment communities in the Houston area. Although Houston rental rates are on the rise, they still lag behind Dallas-Fort Worth and Austin rates, which were measured at $ 1,273 per month and $ 1,422 per month, respectively.
Apartment building activity also continued in Houston’s Inner Loop during the pandemic.
Units built in last 12 months: 1,546
Units under construction: 2,087
Highland Village-Upper Kirby-West U
Units built in last 12 months: 1,317
Units under construction: 0
Med Center-Braes Bayou
Units built in last 12 months: 338
Units under construction: 607
Units built in last 12 months: 2,544
Units under construction: 1,264